Equinor expects its marketing, midstream, and processing (MMP) division to have earned more than the company’s guidance of $400 million for the third quarter, thanks to very strong refining margins and high proceeds from oil and LNG trading. The Norwegian major and other energy companies continue to benefit from the high and volatile oil and LNG prices and the global fuel crunch, which has sent refining margins to record highs. The third-quarter result in the MMP division is expected to be above the guidance, amid an average…
LNG Market Background
The global LNG market has undergone a structural transformation in recent years, with U.S. exports reshaping trade flows and providing consuming nations with greater supply optionality. European buyers have accelerated long-term LNG contracting following the disruption of Russian pipeline gas supplies.
New LNG liquefaction capacity — from the U.S. Gulf Coast, Qatar's North Field expansion, and Australian projects — is expected to add significant supply volumes through the late 2020s, with implications for long-term contract pricing and spot market dynamics.
What to Watch
Stakeholders will be tracking spot LNG cargo pricing in Asian and European markets, liquefaction plant utilization rates, and upcoming long-term supply contract negotiations as global LNG trade flows continue to evolve.
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